HomeNewsBRICS Initiative: Russia's Law on Digital Assets Targets Dollar Hegemony in Trade

BRICS Initiative: Russia’s Law on Digital Assets Targets Dollar Hegemony in Trade

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  • Russia and BRICS aim to diminish US dollar dominance by adopting digital assets for trade, enhancing economic sovereignty.
  • Digital assets offer a secure, private alternative to traditional banking, reducing vulnerability to external interventions.

Russia, as part of the BRICS group, has officially sign law to use digital assets for settlement of trade transactions. Its known that the move was taken as a strategy to keep the Russian economy alive amid US efforts to curb its growth through various sanctions.

Russia Leads BRICS in Digital Trade Revolution 

The new law will allow the use of digital financial assets (DFAs) in cross-border transactions, while removing the role of the US dollar in it. Indirectly, it reduces the dominance of the US currency in the foreign trade cycle between BRICS member states.

In addition to avoiding sanctions, which have curtailed Russian movements, this latest move is also a sign of unity among BRICs member countries. The group aims to reduce their dependence on the US dollar and increase the use of their local currencies.

As has been highlighted by various observers, the trash of this shift is likely to be felt in various sectors of the global economy, especially in the areas of Banking and Finance, Technology and Fintech, International Trade and Investment, Consumer Goods and Retail, as well as Travel and Tourism.

The transition from US dollars to digital assets in trade between BRICS countries can change the dynamics of financial markets, drive technological innovation and create new patterns of trade that are more inclusive and diverse. Whether crypto will play a role, is still a major concern of crypto enthusiast.

Unified Front Against Dollar Dominance

It is that the approval of this new law is a response to the US’s intense pressure on Russia through sanctions. The Kremlin has long been looking for alternatives toining its foreign economy. This latest move is also a strong signal that the BRICS countries are serious about creating a more sovereign and independent global financial system.

By adopting digital assets for trade settlement, Russia and the other BRICS countries put themselves in a position to avoid sanctions and strengthen their economies, as formerly reported by ETHNews.

Anatoly Aksakov, Head of the Finance Committee in the Russian State Duma, highlighted the limitations of the traditional banking system that made transactions and inter-agency interactions, including with BRICS countries, too open and vulnerable to intervention by “enemies”. He said;

“By switching to digital assets, transactions can be safer and more private, providing an additional layer of protection against external surveillance and intervention.”

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628